REPORT

Monthly net tangible asset (NTA) backing per share
and top 25 investments as at 31 March 2019

$
Before Tax*
6.03
31 March 2019
$
After Tax*
5.19
 
$
 
5.99
28 February 2019
$
 
5.15
 
* The before and after tax numbers relate to the provision for deferred tax on the unrealised gains in the Company’s investment portfolio. The Company is a long term investor and does not intend disposing of its total long term investment portfolio. Under current Accounting Standards, the Company is required to provide for tax on any gains that may arise on such a theoretical disposal, after the utilisation of brought forward losses.

Key Facts

Investment objectives: AFIC aims to provide shareholders with attractive investment returns through access to a growing stream of fully franked dividends and enhancement of capital invested over the medium to long term.

Benchmark: S&P/ASX 200 Accumulation Index.

Size of portfolio: $7.2 billion at 31 March 2019.

Management cost: 0.14 per cent, no performance fees.

Investment style: Long-term, fundamental, bottom-up.

Suggested investment period: Five years to 10 years or longer.

Net asset backing: released every month with top 25 investments.

Listed on ASX and NZX: code AFI.

Key Benefits

Diversified portfolio primarily of ASX-listed Australian equities.

Tax-effective income via fully franked dividends.

Consistent after tax paid investment returns achieved over the long term.

Professional management and an experienced Board, investment and management team.

Low-cost investing.

Ease of investing, transparent ASX pricing, good liquidity in shares.

Shareholder meetings on a regular basis.

Portfolio and share price performance - ending 31 December 2018

Past performance is not indicative of future performance. Portfolio performance is after expenses and tax paid whereas the Index does not have expenses or tax.

Share Price to NTA

Investment by Sector 21/11/2018

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Market Commentary

The market consolidated in March, the S&P/ASX 200 Accumulation Index adding 0.73% to finish the quarter up 10.89%.

Defensive orientated stocks and sectors performed strongly in March, likely benefitting from strength in bond markets (yields falling). In this setting, the REIT sector (up 6.2%), telecommunications (up 4.0%) and consumer staples (+3.9%) were positive contributors to the share market.

 

Energy stocks were largely weaker in March with the energy sector (down 4.1%) despite a rising US$ oil price. The financial sector (down 2.7%) was the only other sector to record a negative return, reversing some of February’s gains.

For more information visit our website: afi.com.au

CompanyTotal Value $ Million% of Portfolio
1Commonwealth Bank of Australia*567.58.2
2BHP*518.87.5
3Westpac Banking Corporation402.95.8
4CSL374.35.4
5Transurban Group*295.54.3
6National Australia Bank 291.04.2
7Wesfarmers 232.93.4
8Macquarie Group 230.73.3
9Australia and New Zealand Banking Group 220.93.2
10Amcor 192.82.8
11Rio Tinto 190..52.7
12Woolworths Group 172.32.5
13Woodside Petroleum 145.42.1
14Brambles 142.82.1
15Telstra Corporation 133.41.9
16Sydney Airport132.81.9
17Oil Search 129.41.9
18James Hardie Industries110.01.6
19Mainfreight 102.91.5
20Qube Holdings97.91.4
21Ramsay Health Care 91.11.3
22Sonic Healthcare 90.31.3
23Treasury Wine Estates 81.41.2
24Coles Group79.71.1
25Computershare 79.61.1
Total5,106.870.4**

* Indicates that options were outstanding against part of the holding.

** As a percentage of total portfolio (excludes cash).

Important Information

This information has been prepared by Australian Foundation Investment Company Limited (AFIC) (ABN 56 004 147 120) and is provided by its subsidiary Australian Investment Company Services Limited, holder of Australian Financial Services Licence 303209 (Provider).

To the extent that this information includes any financial product advice, the advice is of a general nature only and does not take into account any individual’s objectives, financial situation or particular needs. Before making an investment decision an individual should assess whether it meets their own needs and consult an appropriately licensed financial adviser.

The information contained in these materials have been prepared in good faith. However, no warranty (express or implied) is made as to the accuracy, completeness or reliability of any statements, estimates or opinions or other information contained in these materials (any of which may change without notice) and to the maximum extent permitted by law, the Disclosers disclaim all liability and responsibility (including, without limitation, any liability arising from fault

or negligence on the part of any or all of the Disclosers) for any direct or indirect loss or damage which may be suffered by any recipient through relying on anything contained in or omitted from these materials.

A copy of the relevant Financial Services Guide can be found on AFIC’s website: www.afi.com.au